CANADA AT A GLANCE: PM SEGMENT
Story Filed: Thursday, April 15, 1999 2:34 PM EST
Winnipeg, MB, Canada, Apr. 15, 1999 (Resource News International via COMTEX) -- The
following is a summary of Canadian news headlines. COREL CHIEF DODGES CRITICISM
Shareholders tested Corel Corp. chief executive Michael Cowpland with tough questions about
elusive profits and management credibility at Corel's annual meeting yesterday. But he was also
praised for efforts to turn around the troubled software company after an impressive display of new
versions of its flagship WordPerfect and CorelDraw products about to hit retailers around the world.
While some shareholders were openly skeptical about company management and some left early in
disgust, there were no demands for Cowpland's resignation unlike a year earlier. A veteran at
corporate crisis management, the Corel CEO had no trouble brushing off the challenges, including
one direct appeal to board member Bill Davis, the former Ontario premier, to deal with the
company's credibility problems.
"I don't see any problems with profitability," Cowpland told one exasperated shareholder who had
challenged him to discuss profits. "I believe that in the current quarter we will be strongly profitable
and in quarters going forward."
The company has had one profitable quarter in the last two years. But it is sticking to predictions of a
profitable year despite losing C$14.6 million in the first quarter. Corel stock declined four cents to
$4.51 yesterday.
Several shareholders were optimistic after seeing new products and strategies. Toronto investor
George Teichman praised Corel's recent deal with a PC Chips, which will build 18 million low-cost
computers in China and load them with WordPerfect 8, a product that is about to be replaced. The
deal won't generate significant revenues but could lead buyers to upgrade to future WordPerfect
products.
"Corel was criticized in the media for not making a bundling deal with a big-name company like
Compaq," Teichman said, "but Compaq has just reported a major drop in profits. I think Corel
shares have a lot of potential for growth in the next year."
Actually, Corel has a deal with Compaq, which puts WordPerfect Suite 8 on its Presario
computers in 7,000 Radio Shack stores across the United States.
Below the surface was deep shareholder concern about a company that has regularly disappointed
shareholders. Some walked out early. (Ottawa Citizen)
CRACK IN FAST-FERRY ENGINE
Another crack has appeared in British Columbia's first fast ferry, Pacificat. This time it's a
six-millimeter-long hairline crack in the block of the outer starboard engine. The previous crack was
in a stabilizer and caused the high speed vessel to spend time in dry dock.
The engine will be replaced by the manufacturer, MTU of Germany, and British Columbia Ferry
spokesman Clay Suddaby said the cost will be borne by the warranty, not the taxpayer. He said the
engine will take a week to 10 days to replace.
The ferry remains on schedule to transport paying customers from its base in Departure Bay in
Nanaimo on Vancouver Island to Horseshoe Bay in the Lower Mainland by mid to late June. The
controversial fast-ferry program has been plagued by cost overruns and delays. (The Globe and
Mail) |
